I hate to say this, but I think they are both right -- to a degree. They are just not giving you enough detail.
If I recall the process the last time I had to get a refund on a label (which was a few months ago, so things may have changed since then), there was a link/button to get a refund for the label right on the Paypal transaction for the Canada Post label payment.
If you bring up the Paypal transaction that has all the details of the label purchase, look for it there. If I remember correctly, the link takes you to a Canada Post page, and once you've processed the request you'll get the usual message about having to wait "X" number of days (I think it was 15) for the payment to be reversed.
The only thing I can't tell you is whether 2 months is too long to be able to request a label refund. Any time I've had to do this, I've made the request the same day, or the next day.
If you can't see any link for the reimbursement, you should probably call Paypal again and persist until you get somebody who knows what they're talking about. Make sure you tell them the labels were done 2 months ago.
I hope this may help!
(Incidentally, due to so many problems with Paypal and browsers, if a label won't print with one browser after I've paid for it, my strategy now -- rather than voiding the label -- is to just completely log out of Paypal and close off that browser, go into Paypal using a different browser (within the allowable 24 hour window), and use the "Reprint Label" function from there. It's worked every time, and I've never had to void a label since. Mind you, sometimes I have to go through 3 browsers to finally get one that works, but once you get it printed, at least that problem is solved.) 
Ultimately it's Canada Post BUT because PayPal is the purchaser of record THEY are the ones you have to chase.
I've only put in for a postage refund once, it took 3 - 4 weeks to show up. On the other hand I've seen a few posts over the years where people waited more than a month, called PayPal and got the refund immediately along with some bogus reason for the delay "we were waiting on Canada Post"
@triber wrote:Thanks for the help. Yes, I already voided the labels, next time I will take your advice Rose-Dee and go to another browser. A nice guy on Paypal has refunded my payments, it guess it depends on who you speak to, but he was really nice and understanding.
Nice and understanding is just great but how about fixing this issue that has gone on for years and years?
This is a classic example of a defect in action, although they fixed things for you there is no reason it should have not all happened automatically and on time (Like Vistaprint "right and on time"). Fixing a mistake that shouldn't happen in the first place is simply doing the minimum amount required, I'm not inspired!
